VCCI proposes to unify criteria for selecting pilot projects using "other land"
VCCI is concerned about asking and giving when determining pilot investment projects to implement commercial housing projects through agreements on receiving land use rights or having land use rights for other land.
The Vietnam Federation of Commerce and Industry (VCCI) has just sent the Ministry of Natural Resources and Environment its comments on the proposal to develop a Resolution on piloting the implementation of commercial housing projects through negotiations on receiving land use rights or having land use rights for other land.
VCCI fully agrees and highly agrees with the development of a pilot Resolution allowing enterprises to receive transfers of the right to use "other land", allowing enterprises that currently have "other land" to carry out commercial housing projects.
It should be reiterated that allowing enterprises to receive transfers of the right to use “other land” and allowing enterprises that currently have “other land” to carry out commercial housing projects is one of the major and important recommendations of enterprises during the drafting process of the 2024 Land Law.
However, the 2024 Land Law only stops at the regulation that enterprises are only allowed to receive the transfer of "residential land", enterprises that have "residential land or residential land and other land" are allowed to carry out commercial housing construction investment projects.
“This is a very necessary regulation, meeting practical needs, overcoming current difficulties and removing obstacles of many current projects,” VCCI clarified the reason for agreeing with the development of the pilot Resolution, in a document sent to the Ministry of Natural Resources and Environment.
However, VCCI also has some different opinions from the Draft being consulted.
Specifically, regarding the subjects of application, the Draft Proposal is defining the subjects of application as "enterprises with real estate business functions according to the provisions of the law on real estate business; land users according to the provisions of the Land Law".
VCCI's view is that it is not necessary to stipulate "enterprises with real estate business functions" as the applicable subjects. The reason is that the concept of "land users" as stipulated in Article 4 of the 2024 Land Law already covers "enterprises with real estate business functions".
Regarding transferred land, VCCI proposed to add a land recovery mechanism, in addition to the mechanism for receiving the transfer of "other land" to build commercial housing as stipulated in the Draft Resolution.
According to VCCI's analysis, the addition of a land recovery mechanism will facilitate the implementation process, similar to Clause 2, Article 127 of the 2024 Land Law. Accordingly, in the case where the land area to be transferred includes "land area managed by a State agency or organization but cannot be separated into an independent project", the land area managed by a State agency or organization will be included in the total land area for project establishment and will be recovered by the State to be allocated or leased to investors to implement the project without having to go through the form of auctioning land use rights, without having to bid to select investors to implement the project using land.
Regarding the implementation area, the Draft is proposing that localities will issue criteria on area, investment capital and other criteria suitable to local reality to select projects in the area allowed for piloting.
“This proposal may raise concerns about the request-grant mechanism when determining investment projects that are subject to the pilot mechanism. To limit this situation, it is recommended to consider stipulating common criteria in the Resolution, and localities will rely on these criteria to determine suitable projects,” VCCI suggested.
The Ministry of Natural Resources and Environment is proposing to draft a National Assembly Resolution on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights that are not residential land.
The pilot period is expected to be 5 years, starting from January 1, 2025. Priority will be given to piloting in urban areas and areas with approved urban development planning.
The pilot implementation of commercial housing projects through agreements on receiving land use rights or having land use rights that are not residential land shall not exceed 30% of the number of projects and 20% of the total area of housing project development needs approved by the housing development program and plan until 2030.
Source
Comment (0)